IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i23p10221-d1527123.html

Evaluating BIM’s Role in Transforming Cash Flow Forecasting Among Construction SMEs: A Saudi Arabian Narrative

Author

Listed:
  • Azal Mahboob

    (Trojan General Contracting LLC, Abu Dhabi P.O. Box 111059, United Arab Emirates)

  • Akila Rathnasinghe

    (Faculty of Engineering and Environment, Northumbria University, Newcastle-upon-Tyne NE1 8ST, UK)

  • Anushika Ekanayake

    (School of Engineering and Built Environment, Birmingham City University, Birmingham B4 7AP, UK)

  • Piyumi Tennakoon

    (Department of Building Economics, University of Moratuwa, Moratuwa 10400, Sri Lanka)

Abstract

This scholarly investigation examines the efficacy of Building Information Modelling (BIM) in enhancing cash flow forecasting (CFF) among construction Small and Medium-sized Enterprises (SMEs) in Saudi Arabia, with a specific focus on fostering innovation for sustainable economic advancement. In so doing, it seeks to strengthen the long-term viability of SMEs within the rapidly growing Saudi construction sector, thereby contributing meaningfully to broader economic goals. A quantitative research methodology was employed, with empirical data gathered through a questionnaire survey administered to one hundred construction stakeholders within Saudi Arabian SMEs. Quantitative data analysis techniques were applied to elucidate key themes and pressing issues in current CFF practices. The findings highlight critical challenges faced by Saudi Arabian SMEs in cash flow management, notably a scarcity of financial resources, a lack of advanced CFF expertise, and resistance to technological adoption. Integrating BIM into CFF processes emerges as an effective solution, addressing these challenges by providing accurate, timely financial data, improving project planning and execution, and enabling more informed decision-making, thereby fostering sustainable business operations. The proposed BIM integration strategy offers a practical roadmap for SMEs to adopt BIM for enhanced CFF, aligning with and advancing the sustainable economic objectives outlined in Saudi Arabia’s Vision 2030. By focusing on the unique context of Saudi Arabian construction SMEs and their specific cash flow management challenges, this study enriches the existing literature with substantive insights. It critically illustrates how BIM adoption can transform traditional financial management practices, presenting a robust framework for promoting sustainable economic development through innovation in CFF. Furthermore, these findings have significant implications for other developing economies seeking to leverage technological advancements as drivers of long-term growth.

Suggested Citation

  • Azal Mahboob & Akila Rathnasinghe & Anushika Ekanayake & Piyumi Tennakoon, 2024. "Evaluating BIM’s Role in Transforming Cash Flow Forecasting Among Construction SMEs: A Saudi Arabian Narrative," Sustainability, MDPI, vol. 16(23), pages 1-23, November.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:23:p:10221-:d:1527123
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/23/10221/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/23/10221/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Faiza Manzoor & Longbao Wei & Noman Sahito, 2021. "The role of SMEs in rural development: Access of SMEs to finance as a mediator," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-18, March.
    2. Abraham,Facundo & Schmukler,Sergio L. & Abraham,Facundo & Schmukler,Sergio L., 2017. "Addressing the SME finance problem," Research and Policy Briefs 120333, The World Bank.
    3. Naif Alaboud & Adnan Alshahrani, 2023. "Adoption of Building Information Modelling in the Saudi Construction Industry: An Interpretive Structural Modelling," Sustainability, MDPI, vol. 15(7), pages 1-21, April.
    4. Hasan Mahmoud & Vian Ahmed & Salwa Beheiry, 2021. "Construction Cash Flow Risk Index," JRFM, MDPI, vol. 14(6), pages 1-17, June.
    5. Müller, Julian M. & Buliga, Oana & Voigt, Kai-Ingo, 2021. "The role of absorptive capacity and innovation strategy in the design of industry 4.0 business Models - A comparison between SMEs and large enterprises," European Management Journal, Elsevier, vol. 39(3), pages 333-343.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kokil Talan & Narain Gupta, 2026. "Comparative analysis of industry 4.0 and blockchain adoption readiness dimensions in manufacturing sector: a systematic literature review and research agenda," Future Business Journal, Springer, vol. 12(1), pages 1-18, December.
    2. Kramat Hussain & Huaping Sun & Muhammad Ramzan & Shahid Mahmood & Muhammad Zubair Saeed, 2024. "Interpretive Structural Modeling of Barriers to Sustainable Tourism Development: A Developing Economy Perspective," Sustainability, MDPI, vol. 16(13), pages 1-32, June.
    3. Nay Chi Khin Khin Oo & Sirisuhk Rakthin, 2022. "Integrative Review of Absorptive Capacity’s Role in Fostering Organizational Resilience and Research Agenda," Sustainability, MDPI, vol. 14(19), pages 1-27, October.
    4. Héctor Cuevas-Vargas & Héctor Abraham Cortés-Palacios & Cid Leana-Morales & Eduardo Huerta-Mascotte, 2022. "Absorptive Capacity and Its Dual Effect on Technological Innovation: A Structural Equations Model Approach," Sustainability, MDPI, vol. 14(19), pages 1-18, October.
    5. Daliborka Witschel & Julian Marius Müller & Kai-Ingo Voigt, 2023. "What Takes the Wind out of Their Sails? A Micro-Foundational Perspective of Challenges for Building Dynamic Capabilities Towards Digital Business Model Innovation," Schmalenbach Journal of Business Research, Springer, vol. 75(3), pages 345-388, September.
    6. Feng, Taiwen & Yang, Shan & Sheng, Hongyan, 2024. "Supply chain integration and novelty-centered business model design: An organizational learning perspective," European Management Journal, Elsevier, vol. 42(3), pages 414-424.
    7. Camila Silva Mattos & Giustina Pellegrini & Geoffrey Hagelaar & Wilfred Dolfsma, 2024. "Systematic literature review on technological transformation in SMEs: a transformation encompassing technology assimilation and business model innovation," Management Review Quarterly, Springer, vol. 74(2), pages 1057-1095, June.
    8. Muzaffar Iqbal & Irfan Ullah & Heba Abdou & Majed Alzara & Ahmed M Yosri, 2025. "Blueprint for progress: Understanding the driving forces of BIM adoption in Kingdom of Saudi Arabia (KSA) construction industry," PLOS ONE, Public Library of Science, vol. 20(2), pages 1-24, February.
    9. Adam Figiel & Ayesha Badar, 2025. "Effect of Green Entrepreneurial Orientation and Absorptive Capacity on Green Innovation and Environmental Orientation Among Educated Gen Z’s in Europe," Sustainability, MDPI, vol. 17(2), pages 1-21, January.
    10. Dinh Van Hoang & Nguyen Thi Hien & Han Van Thang & Phan Nguyen Truc Phuong & Trang Thi-Thuy Duong, 2025. "Digital Capabilities and Sustainable Competitive Advantages: The Case of Emerging Market Manufacturing SMEs," SAGE Open, , vol. 15(2), pages 21582440251, April.
    11. Emanuele Gabriel Margherita & Jérôme Sulbout, 2021. "Freelancers 4.0: the impacts of freelancers on the adoption of Industry 4.0 under a socio-technical perspective," Post-Print hal-03442389, HAL.
    12. Zhui Liu & Yuchun Tian, 2025. "The impact of corruption governance on enterprise ambidextrous innovation: evidence from a quasi-natural experiment in China," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(2), pages 349-384, June.
    13. Xinpeng Xing & Chunping Zhu & Yuchuan Lin & Tiansen Liu, 2024. "Can digital platform empowers inbound and outbound open innovation? From the perspective of the innovation ecosystem," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    14. Tarawneh Sultan & Almahmoud Anoud Fawwaz & Hajjeh Hassan, 2023. "Impact of cash flow variation on project performance: contractors’ perspective," Engineering Management in Production and Services, Sciendo, vol. 15(1), pages 73-85, March.
    15. Sardar Muhammad Usman & Farasat Ali Shah Bukhari & Huiwei You & Daniel Badulescu & Darie Gavrilut, 2020. "The Effect and Impact of Signals on Investing Decisions in Reward-Based Crowdfunding: A Comparative Study of China and the United Kingdom," JRFM, MDPI, vol. 13(12), pages 1-20, December.
    16. Shankar Ghimire & Bharat Singh Thapa & Rong Zheng, 2025. "Microfinance for change: how financial innovation enables structural transformation," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 11(1), pages 1-20, December.
    17. Abdijabbar Ismail Nor, 2024. "Entrepreneurship Development as a Tool for Employment Creation, Income Generation, and Poverty Reduction for the Youth and Women," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 19387-19410, December.
    18. Maria Kukurba & Aneta Ewa Waszkiewicz & Mariusz Salwin & Andrzej Kraslawski, 2021. "Co-Created Values in Crowdfunding for Sustainable Development of Enterprises," Sustainability, MDPI, vol. 13(16), pages 1-21, August.
    19. Alsagr, Naif & Cumming, Douglas J. & Davis, Justin G. & Sewaid, Ahmed, 2023. "Geopolitical risk and crowdfunding performance," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 85(C).
    20. Basha, Shabeen Afsar & Bennasr, Hamdi & Goaied, Mohamed, 2023. "Financial literacy, financial development, and leverage of small firms," International Review of Financial Analysis, Elsevier, vol. 86(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:23:p:10221-:d:1527123. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.